Indian Economy News & Discussion - Nov 27 2017

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vijayk
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

This whole thread summarizes COVID economc strategy of India vs west

https://twitter.com/RMantri/status/1565648340632477697
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://economictimes.indiatimes.com/ne ... 937057.cms

It's not India's decade, it's India's century, says McKinsey's Bob Sternfels
India will be the world's future talent factory as it will have 20% of the globe's working population by 2047, aid Bob Sternfels, CEO, McKinsey & Co. The firm's 13th global leader added that it will not only be India's decade, but India's century,
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.bloomberg.com/news/articles ... st-economy
UK Slips Behind India to Become World’s Sixth Biggest Economy
Loss of status comes as ruling Tory party elects new premier
Cost of living shock batters UK, while Indian economy surges
Britain has dropped behind India to become the world’s sixth largest economy, delivering a further blow to the government in London as it grapples with a brutal cost-of-living shock.

The former British colony leaped past the UK in the final three months of 2021 to become the fifth-biggest economy. The calculation is based in US dollars, and India extended its lead in the first quarter, according to GDP figures from the International Monetary Fund.

The UK’s decline down the international rankings is an unwelcome backdrop for the new prime minister. Conservative Party members choose Boris Johnson’s successor on Monday, with Foreign Secretary Liz Truss expected to beat former Chancellor of the Exchequer Rishi Sunak in the run-off.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by VinodTK »

^^^ This is a huge accomplishment to move from 11th position to 5th in 10 years.

India pips UK to become world's 5th biggest economy

On to Germany
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vamsee »

^^^^^
Euro-$ parity is a big blow to the size of German economy (#4 in the world).

For the Quarter Apr-Jun 2022:
German Economy : $942.48 (Assuming 1Euro = 1$)
Indian Economy : $854.70

--Vamsee
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by kit »

Image

India is THE shining spot of the world economy, whether one looks or not .


An analysis of IMF’s 47 years data across 190 countries show India is set to record its best-ever economic performance on the global stage in the next five years

source : https://timesofindia.indiatimes.com/bus ... 087715.cms
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

Germany seems heil bent on cooking its own blutwurst and chasing it down with RussBier. If they continue this Green way, they'll struggle to stay in the top 10 in a couple of years.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

Post by JTull »

UPI Logs 6.57 Billion Transactions Worth Over Rs 10.72 Lakh Crore In August
In a significant development, the number of monthly transactions on the Unified Payments Interface (UPI) platform touched 6.57 billion in August 2022, up marginally from the previous month.

The UPI platform reported 6.57 billion transactions amounting to over Rs 10.72 lakh crore in August 2022.

According to data released by the National Payments Corporation of India, which developed the UPI platform, around 5.86 billion transactions amounting to Rs 10.14 lakh crore were reported in June.

UPI touched the 6 billion-transaction mark for the first time in July, registering 6.28 billion transactions worth Rs 10.62 lakh crore.

The platform surpassed 1 billion transactions mark for the first time in October 2019, over three years after its launch in 2016.

In October 2020, UPI processed over 2 billion transactions, and after nearly months crossed 3 billion transactions mark in July 2021. The next 1 billion came in just another few months, as the payment platform reached over 4 billion transactions per month in October 2021.In March 2022, UPI breached the five billion transactions mark.

The platform processed over 46 billion transactions amounting to more than Rs 84.17 lakh crore in financial year 2021-22.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by rajkumar »

Indian Toy Manufacturer Sucess Story

https://www.hindustantimes.com/cities/d ... 65777.html
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

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https://timesofindia.indiatimes.com/bus ... 013066.cms

Service sector activity gains steam, job growth rise max in job growth rise max in 14 years
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

UPI additional milestones:
* TTM (Trailing 12 month) cumulative total crossed 60 billion transactions
* FYTD (financial year to date) total is over 30 billion transactions - in 5 months.
* CYTD total is almost 45 billion transactions
* By Sept or Oct, TTM transaction value will cross $1.5 trillion despite the drop in exchange rate. By end of FY it should cross $2 trillion. In rupee terms the TTM value figure is Rs.109 lakh crore.
* Total transactions per day is 235 million.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by shaun »

rajkumar wrote:Indian Toy Manufacturer Sucess Story

https://www.hindustantimes.com/cities/d ... 65777.html
Admin delete if you find it worth deleting

Toy industry’s Make in India moment

Until two years ago, Jitender Singh was one of Delhi’s biggest toy traders in Sadar Bazar, who imported goods worth ₹2 crore a month from China.

In January this year, he set up his own toy manufacturing unit in Kundli in Sonepat. Spread over 35,000 sq ft across four floors, the factory has a range of machines, including high-capacity injection moulders. It is late afternoon, and over 150 men and women are working at the assembly lines.


“The government’s policies in the past couple of years have ensured that it is much easier to be a manufacturer than an importer of toys. Earlier 95% of toys in my shop in Sadar Bazar were Chinese; now 100% of them are made here in my own factory, ” says Singh, sitting inside his factory, which he runs with his daughters Muskan, and Jasmita Chug.

“ In 8 months, we are already making about 50 different kinds of toys. In the next few weeks, we intend to make over 100 varieties of toys,” says Muskan, 22, showing a range of toys, including radio-operated cars, educational keyboards, and prancing frogs, produced under the brand name Gooyo. Every toy has Made in India engraved on it, and their packaging has the Make-in-India lion symbol.


Singh is not the only toy importer who has turned manufacturer in the past couple of years. India’s toy industry, which was almost decimated by Chinese imports in the past two decades, is showing signs of revival in the aftermath of the pandemic. Toy factories in the National Capital Region, some of them recently started by importers such as Chug in areas such as Narela, Bawana, Kirti Nagar, Noida and Sahibabad, are busy like never before, with orders far exceeding their capacities.

NCR has over 100 small and medium enterprises making toys. Most of these enterprises, which were struggling to survive until a couple of years ago, are now on an expansion drive, and they attribute the turnaround in their fortunes to a slew of government interventions in the past couple of years such as a hike in basic Customs duty from 20% to 60%, and bringing toys under Bureau of Indian Standards (BIS) certification, among others.


In 2018-19, India’s toy import was worth $ 371 million, which drastically came down to $110 million in 2021-22 in the aftermath of the pandemic, a fall of over 70.35%, the commerce ministry said in a statement last week.


Sabarjeet Singh, who runs Centy Toys, a firm that makes pullback toy models of over 100 Indian transport vehicles, including auto-rickshaws, buses, cars and trains, among others, says his sales have increased over four times in the past three years.

“Three years back, it was around ₹7 crore a year, and we are about to touch almost ₹30 crore this year,” says Singh. The firm’s office in Kirti Nagar industrial area looks like a little transport museum. “We have recently started exporting to Australia.”

Singh has ramped up his manufacturing capacities several times in the past two years, setting up three new manufacturing units in Bawana industrial area in Delhi and increasing his manpower from 100 to 300. The factory also has an in-house lab, with equipment for sharp edge test, drop test, torque test, and accessibility probes, to conduct toy testing in accordance with the government’s new BIS guidelines.

“The government’s decision to make BIS certification compulsory for all manufacturers, including foreign ones, has emerged as a big trade barrier for Chinese toys in India, helping Indian toy makers a great deal, ” says Singh.

On February 25, 2020, the Union government issued a Toys (Quality Control) Order, bringing toys under compulsory BIS certification with effect from January 1, 2021. Under the BIS product certification, only those foreign manufacturers whose manufacturing and testing capability has been assessed as satisfactory by BIS can obtain a BIS license and export toys to India.

“The country aims to be a major producer as well as exporter of toys because of its huge potential for capturing markets as well as for employment. To realise this, the government has made a series of interventions,” a commerce ministry official said requesting anonymity. According to the official, these interventions include publication of 10 standards by the Bureau of Indian Standards, out of which seven are the part of its quality control order on safety of toys that came into effect Jan 1 2021. Other interventions include mandatory sample testing of each export consignment as per requirements of the directorate general of foreign trade.

“This has created such a huge demand for ISI-marked toys. Until a couple of years ago, Indian toy manufacturers used to go to the traders and plead with them to sell their toys,” says Naresh Kumar Gautam, vice president, Toy Association of India, and the founder of Little Genius Toys, one of India’s biggest wooden toy companies, with a manufacturing unit in Toy City in Greater Noida.

“Today, traders come to manufacturers, who are unable to meet the rising demand from traders and toy brands. Today, almost all manufacturers in the organised sector are booked for at least three months. The change can also be gauged from the fact that in annual Toy Biz International, a global B2B toy show organized by our association in 2019, 93 of 113 exhibitors were foreign companies, but this year at the show, which ended on July 5, almost all 93 stalls were put by Indian toy companies,” Gautam says.

For the last two years, Gautam has been busy expanding his manufacturing capacity, and last week added a new 14,000 sq ft floor to his factory, which is now 51,000 sq ft spread across four floors. “Every toy-maker is an expansion mode, and those who had shut their factories in the past two decades are reviving them. About 137 toy makers have bought land in the upcoming Toy Park along the Yamuna Expressway,” he says. Manufactures say that the pandemic , which led to global supply chain disruptions, prompted the union government to reboot its Make in India initiative, with a special focus on the toy sector. “The PM’s continuous emphasis on local manufacturing of toys in the past two years was a great morale booster for us,” says Gautam.

Sunny Singh, an importer of toys in Sadar Bazar who started manufacturing two years ago, is currently looking for space to start another factory. But for him it has been a tough transition from being an importer to a manufacturer of toys.

“The new BIS rules for toys left importers like us no option but to get into manufacturing, ” he says. “While I had been importing for many years, I knew next to nothing about manufacturing. And with so many compliances, I still find that running a factory is so much more difficult than importing,” says Sunny Singh, who runs Awals Creations, earlier the name of his toy trading enterprise in Sadar Bazar, but now also the name of his manufacturing unit in Naraina industrial area in Delhi, where he also does contract manufacturing for other toy makers.

Traders in Sadar Bazar, Delhi’s wholesale toy hub, say Indian manufacturers currently do not yet have the capacity to meet the demand. Balkrishan, a toy dealer in the market, says that in the past two years, he has had to switch from selling made-in-China to made-in-India toys.

“Because even foreign manufacturing units need BIS certification, toy import is almost impossible as of now. Unlike in 2020, when 95% of the toys in my shop were imported, now almost 100% are made in India, and quite a significant part of them are made in the factories of Noida and Bawana in Delhi. But my business is down by 60% as there is not enough supply of toys from Indian manufacturers,” says Balkrishan, who has a toy shop in Sadar Bazar. “ Besides, very few manufacturers can match the quality of imported toys. They need to up their game fast.”

Deepak Vats, one of India’s biggest pichakari (water guns used on Holi) makers in Delhi’s Narela, says that there is a need for research and development in the toy sector in the country. Starting with a water gun, in the past two years, he has switched to making over 40 different kinds of toys, including, stacks, wheels, ring catchers, six-pin bowling sets, baby swings, and magic way, among others.

Vats , a mechanical l engineer, is among the very few toys’ makers in Delhi who make their own moulds. The process of making toys, Vats explains, starts with creating moulds in the tool room, which has a Computerized Numerical Control (CNC) Machine Centre, and several manual lathe, drilling, and milling machines.

The mould is then taken to the injection moulding and blow moulding machines. Plastic granules are fed into these machines to be melted. The hot molten plastic is shot by the machine into the mould’s cavities. Then it cools, hardens, and now a solid object—a part of the toy –is ejected.

“It is the quality of the mould, the quality of the plastic granules and machining that determine how fine a toy is. Most toys in India are made by small and medium scale industries,” says Vats. “ The government must bring together engineering institutes and MSMEs in the toy sector on a common platform for the development of special-purpose machines to increase productivity and quality of toys. Besides, we need to be self-sufficient in producing electronic chips and motors for toys, which continue to be imported from China.”

In the meanwhile, Jitender Singh is already looking for 10 acres of land around Sonepat, Haryana, to set up a large factory. “ I am determined to match China’s economics of scale in toys.”

Link https://nsbb.in/2022/09/05/toy-industry ... ia-moment/
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.nytimes.com/2022/09/07/busi ... onomy.html
From the U.S. to China, Major Economies Are Stalling. But Not India.
The Indian government expects growth to exceed 7 percent this year, though that pace may be hard to sustain as the global economy continues to slow.

By Mujib Mashal and Suhasini Raj
NEW DELHI — As global economic growth slows sharply, with many major economies gripped with worries of recession, there has been a conspicuous exception: India. :evil:

The Indian government says the country’s economy remains on track to grow by 7 percent or more this year, more than double the projections for global growth, which has been weighed down by Russia’s invasion of Ukraine, rising energy prices and Covid lockdowns in China.

The rapid expansion in India reflects in part the depths to which the economy had fallen during the most devastating shocks of the pandemic, with lockdowns forcing an exodus of laborers from urban centers. It also reflects the insulated nature of India’s economy: It has avoided the worst of the global slump because it is driven more by local demand than exports.
But perhaps most important has been a suite of government policies, including increased public investment, relief to debtors, and credit guarantees to small- and medium-size firms hit hardest by the pandemic. Policy interventions have kept inflation — which has historically been high in India — relatively in check. And purchases of discounted oil from Russia, against the wishes of the United States and Europe, have helped buffer rising global energy prices.
:twisted:

In a resonant symbol of India’s growth, officials have been trumpeting the economy’s leapfrogging of Britain — the country’s former colonizer, which is now grappling with soaring inflation — to become the world’s fifth largest.

“Those who ruled us for 250 years — we have left them behind to move ahead in the world economy. More than moving from sixth to fifth, the joy was in this,” Prime Minister Narendra Modi said. “We have come out of thousands of years of slavery; now is the opportunity. We will not stop.”
While India still estimates growth this year of about 7.4 percent, Nirmala Sitharaman, India’s finance minister, said last month, the country may need to look for ways to support exports in a slowing global economy “so they are not facing the headwinds all by themselves.”

At home, the economy remains unable to create enough jobs for the vast population of working-age people, and its growth remains top-heavy, analysts said. Hundreds of millions of Indians still depend on government rations and are vulnerable to any shock.
Still, India remains a bright spot globally, lifted by a rebound in consumption and investment that was jump-started by a huge Covid vaccination campaign that relied on the country’s capacity as the world’s largest manufacturer of vaccines.


Growth in advanced economies is expected to decrease sharply this year, to 2.6 percent, nearly half the rate of 2021. The U.S. economy is expected to grow at 2.3 percent this year, according to the International Monetary Fund, and at 1 percent next year. The I.M.F. forecasts growth of 3.3 percent this year in China, the lowest in the four decades preceding the pandemic.

Radhika Pandey, an economist with India’s National Institute of Public Finance and Policy, said that while advanced economies were contending with soaring inflation, India’s efforts to bolster supply had helped limit those pressures.

Beyond managing demand, the government tried to simplify procurement processes, introduced production incentives and improved the availability of credit to small businesses.
While interest rate increases in major economies intended to slow inflation have resulted in “demand destruction and slowdown,” Ms. Pandey said, inflation never rose in India at the same level, and the inflation that did occur was more a result of “global headwinds” than overheated domestic demand.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Suraj
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

Our gross fixed capital formation (fixed asset investment) as a percentage of GDP is 34.7% in Q1, according to the Official GDP data reported by MOSPI last week.

This is the highest level in a decade, and also shows a strong rise since the COVID lockdown period, when it bottomed out at 28%. Historically, this level of GFCF has only been seen between 2003-04 when it first rose to that level, and 2012-13 when fiscal management led the investment/GDP to collapse, and the mountain of bad debt took years to overcome.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Suraj wrote:Our gross fixed capital formation (fixed asset investment) as a percentage of GDP is 34.7% in Q1, according to the Official GDP data reported by MOSPI last week.

This is the highest level in a decade, and also shows a strong rise since the COVID lockdown period, when it bottomed out at 28%. Historically, this level of GFCF has only been seen between 2003-04 when it first rose to that level, and 2012-13 when fiscal management led the investment/GDP to collapse, and the mountain of bad debt took years to overcome.
I remember we use to talk about icor and it's correlation to growth back in the day . By this metric do we expect further acceleration? There seemed to be a lag time of 3-4 years back in 2003-04 for capital formation to translate into actual growth numbers. So I presume the best is yet to come ? Usual caveats obviously.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Suraj »

Good memory :) Yes there’s a lag and I see an acceleration of growth through the 2020s, with the potential to top 10% for multiple years. But this requires strong policy making and keeping GFCF to above 35%, ideally at or over 40% for several years. It’s doable considering the 7 percent increase in the past two years.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Dilbu »

From NYT. Apart from the headline everything else in the article is twisted to sound negative on India.
From the U.S. to China, Major Economies Are Stalling. But Not India.
NEW DELHI — As global economic growth slows sharply, with many major economies gripped with worries of recession, there has been a conspicuous exception: India.

The Indian government says the country’s economy remains on track to grow by 7 percent or more this year, more than double the projections for global growth, which has been weighed down by Russia’s invasion of Ukraine, rising energy prices and Covid lockdowns in China.
The rapid expansion in India reflects in part the depths to which the economy had fallen during the most devastating shocks of the pandemic, with lockdowns forcing an exodus of laborers from urban centers. It also reflects the insulated nature of India’s economy: It has avoided the worst of the global slump because it is driven more by local demand than exports.

But perhaps most important has been a suite of government policies, including increased public investment, relief to debtors, and credit guarantees to small- and medium-size firms hit hardest by the pandemic. Policy interventions have kept inflation — which has historically been high in India — relatively in check. And purchases of discounted oil from Russia, against the wishes of the United States and Europe, have helped buffer rising global energy prices.
Left unsaid, though, is that India’s economy must support 1.4 billion people, while Britain has just 67 million. So even as the Indian government reported last week that the economy had grown year on year by 13.5 percent in the second quarter — slightly below its expectation of about 15 percent — it still struggles to meet the needs of a nation that is soon expected to pass China as the world’s most populous.
Private ratings agencies have slashed their growth projections for India’s economy this year by up to a percentage point or more, but their forecasts remain largely in the ballpark of what the Indian government expects. Growth is projected to slow next year to about 6 percent.

Before the pandemic, the Indian economy was already losing steam. India now is only recovering ground lost over the past two-plus years.
Growth in manufacturing has remained slow even on a low base, largely because of rising costs. While India is less reliant than other major economies on exports, they have been a source of strength, especially as the rupee has depreciated, but growth in imports is now more than double those in exports. Some industries, such as hospitality and transportation, have remained below their prepandemic levels, analysts said.
While India still estimates growth this year of about 7.4 percent, Nirmala Sitharaman, India’s finance minister, said last month, the country may need to look for ways to support exports in a slowing global economy “so they are not facing the headwinds all by themselves.”
At home, the economy remains unable to create enough jobs for the vast population of working-age people, and its growth remains top-heavy, analysts said. Hundreds of millions of Indians still depend on government rations and are vulnerable to any shock.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

gakakkad wrote:
Suraj wrote:Our gross fixed capital formation (fixed asset investment) as a percentage of GDP is 34.7% in Q1, according to the Official GDP data reported by MOSPI last week.

This is the highest level in a decade, and also shows a strong rise since the COVID lockdown period, when it bottomed out at 28%. Historically, this level of GFCF has only been seen between 2003-04 when it first rose to that level, and 2012-13 when fiscal management led the investment/GDP to collapse, and the mountain of bad debt took years to overcome.
I remember we use to talk about icor and it's correlation to growth back in the day . By this metric do we expect further acceleration? There seemed to be a lag time of 3-4 years back in 2003-04 for capital formation to translate into actual growth numbers. So I presume the best is yet to come ? Usual caveats obviously.
Arvind Panagariya @APanagariya

In my assessment, all of the current forecasts underestimate India’s GDP growth for 2022-23. I expected the growth rate to cross the 8% mark this year. Let us see if my optimism proves right!
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Re: Indian Economy News & Discussion - Nov 27 2017

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https://www.business-standard.com/artic ... 133_1.html
Russia's exclusion may pave way for India into global bond index
Getting high-yielding Indian sovereign bonds into global indexes would make it easier for overseas investors to put their money into Asia's third-biggest economy with its $1 trillion debt market
India has the biggest bond market among emerging economies that’s not covered by global indexes, but bankers say that may change soon, potentially drawing in billions of dollars in inflows. Russia’s recent exclusion is one reason why.

Morgan Stanley expects an announcement that India will be included in JPMorgan & Chase Co.’s emerging markets bond index as early as mid-September with the actual entry in the third quarter next year. Goldman Sachs Group Inc. sees that announcement coming in the fourth quarter this year and inclusion in the second or third quarter in 2023. Both expect India’s weight at 10%, the maximum for a country in the index, and potential inflows of $30 billion from the move.

Getting high-yielding Indian sovereign bonds into global indexes would make it easier for overseas investors to put their money into Asia’s third-biggest economy with its $1 trillion debt market. It would follow many false starts over the years that resulted from wariness about debt inflows and disagreements including one on tax breaks for foreigners. Russia’s exclusion from the JPMorgan gauges after it invaded Ukraine may have added to incentives for the index compilers to fill the hole with Indian debt.
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Re: Indian Economy News & Discussion - Nov 27 2017

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https://www.telegraph.co.uk/investing/f ... henomenal/
‘India’s bounceback has been phenomenal’
Fund of the Week: Investors are missing out on an emerging market that’s in the black this year
Avinash Vazirani, who manages the £592m Jupiter India fund, describes the speed at which India’s population and economy bounced back from the pandemic as “phenomenal”. Its stock market has also proved resilient so far this year – something that cannot be said of many of its global peers. This has fed through to a strong 12 months for Jupiter India, which has gained 13pc, against 9pc by rival funds.

While Mr Vazirani believes there is much to feel positive about, he says investors must keep an eye on rising tensions between China and India, with 100,000 troops from both sides eye-to-eye in the Himalayan mountains.

“When you ask companies or individuals behind closed doors what they are afraid of most, one is the China situation and the other is prime minister Narendra Modi no longer being in power – we want him for another generation,” the fund manager says.

Why have Indian shares been so resilient this year?
A number of things are happening. For the first time in my 27 years of investing, Indian inflation is lower than in Britain and other Western economies. According to various estimates, it is likely to be around 6pc by March 2023.

There is a lot of investment into manufacturing, while foreign investment is at an all-time high across all sectors of the economy. Let us not forget that India has a large population of qualified young people, which dampens any significant wage pressures. People have jobs and their propensity to spend is higher than their propensity to save. Having said that, the savings rate is at a record high, so there are lots of ­positive factors
.
Why should investors own an India fund over an emerging markets one?
Investors, both DIY and professional, have historically been wrong in thinking about investments in terms of buckets. We coined the term Brics, to mean Brazil, Russia, India, China and South Africa – but what do these countries have in common? Very little. The same applies with emerging markets funds: what do you put in there? I think investors should look at each individual country and what the growth prospects are and decide whether or not to invest.

India handled Covid well and is open, people are travelling, inflation is under control and company earnings have gone up across the board because they are earning more money. Also, corporate profits have been fairly resilient.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vinod »

Europe's de-industrialisation is happening due to the energy crisis. I hope India can come up with some targetted package which incentives the industries there to move to india, especially German. I'm sure many industries in EU are going to be in deep trouble and they all can't be bailed out easily.
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Re: Indian Economy News & Discussion - Nov 27 2017

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Re: Indian Economy News & Discussion - Nov 27 2017

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https://www.businesstoday.in/latest/cor ... 2022-09-13
Vedanta picks Gujarat for $20 bn India semiconductor project with Taiwan's Foxconn
The project will include display and semiconductor facilities near the largest city of Ahmedabad in the western state

The project will include display and semiconductor facilities near the largest city of Ahmedabad in the western state, the source added, declining to be named ahead of an official announcement.

While lobbying for incentives, Vedanta had sought 1,000 acres (405 hectares) of land free of cost on a 99-year lease, and water and power at concessionary and fixed prices for 20 years, Reuters reported in April.

A spokesperson for Vedanta did not respond to a request for comment while Foxconn did not immediately respond.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Cyrano »

India will soon get deals at <70$ per barrel which is just about the right affordable price for us. We should be patient and not get into long-term price locks.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Kaivalya »

vijayk wrote:https://www.businesstoday.in/latest/cor ... 2022-09-13
Vedanta picks Gujarat for $20 bn India semiconductor project with Taiwan's Foxconn
The project will include display and semiconductor facilities near the largest city of Ahmedabad in the western state

The project will include display and semiconductor facilities near the largest city of Ahmedabad in the western state, the source added, declining to be named ahead .
https://www.ft.com/content/adbf31b2-0cd ... 502181b1d2

Slowly but surely...gujarat, tamilnadu, karnataka Work in progress
IGSS Ventures, a Singaporean chipmaker, earlier this year signed a memorandum of understanding with the state of Tamil Nadu in southern India to build a wafer “fab”, for which it says it aims to sign binding agreements by the fourth quarter of this year, before launching production by early 2025.

ISMC, a joint venture between Israel’s Tower Semiconductor and Abu Dhabi-based Next Orbit Ventures, has signed a letter of intent with Karnataka, another southern state, to build a chipmaking plant there.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by V_Raman »

If all oil producing countries are at good capacity - including constrained/sanctioned ones - like Venezuela/Iraq/Russia - then oil will be down to $50 and even $30 is not out of the possibility.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vijayk »

https://www.theguardian.com/world/2022/ ... wer-status
India is quietly laying claim to economic superpower status
India recently overtook UK as the world’s fifth biggest economy – and it could be third by 2030
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by rajkumar »

The Economist Podcast: Money Talk : India's Moment

Https://podcasts.google.com/feed/aHR0cH ... MTQ4?ep=14
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by V_Raman »

India is miraculously managing to break out of the economic/geopolitical straightjacket it was put under over last many decades with many wars and internal subversions foisted upon it.

Bharat Mata Ki Jai!
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vcsekhar »

rajkumar wrote:The Economist Podcast: Money Talk : India's Moment

Https://podcasts.google.com/feed/aHR0cH ... MTQ4?ep=14
As expected from the Economist, they had to speak about the "Hindu rate of growth" and of course to the Modi govt suppression of Muslims :roll: which may cause western countries to stop dealing with India. They just cannot help themselves.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by rajkumar »

vcsekhar wrote:
rajkumar wrote:The Economist Podcast: Money Talk : India's Moment

Https://podcasts.google.com/feed/aHR0cH ... MTQ4?ep=14
As expected from the Economist, they had to speak about the "Hindu rate of growth" and of course to the Modi govt suppression of Muslims :roll: which may cause western countries to stop dealing with India. They just cannot help themselves.
I agree with you about the Economist journalists. I was much more interested in listening to the Chairman of Tata's and especially his comments about (1) cleaning up the balance sheet & (2) Tata's allocating capital to be spent within India
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by vcsekhar »

rajkumar wrote: I agree with you about the Economist journalists. I was much more interested in listening to the Chairman of Tata's and especially his comments about (1) cleaning up the balance sheet & (2) Tata's allocating capital to be spent within India
I agree with you, this podcast is on my daily playlist and its usually pretty good. I have been listening to it for years.
But, they somehow just cannot help themselves when it comes to India, pretty much every time they have something positive to say about the country, they have to add the anti Modi stuff. They just cannot help themselves.
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Lisa »

vcsekhar wrote:
rajkumar wrote: I agree with you about the Economist journalists. I was much more interested in listening to the Chairman of Tata's and especially his comments about (1) cleaning up the balance sheet & (2) Tata's allocating capital to be spent within India
I agree with you, this podcast is on my daily playlist and its usually pretty good. I have been listening to it for years.
But, they somehow just cannot help themselves when it comes to India, pretty much every time they have something positive to say about the country, they have to add the anti Modi stuff. They just cannot help themselves.
Correction,

I agree with you, this podcast is on my daily playlist and its usually pretty good. I have been listening to it for years.
But, they somehow just cannot help themselves when it comes to India, pretty much every time they have some anti Modi stuff to say they have to add something positive about the country. They just cannot help themselves
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by shaun »

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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Kanoji »

India is quietly laying claim to economic superpower status
https://www.theguardian.com/world/2022/ ... wer-status
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Re: Indian Economy News & Discussion - Nov 27 2017

Post by Vadivel »

Why UPI should be free

RBI has released a discussion paper that says: We’ve let you good people live all this time with “free” payment systems, so should we allow banks to start charging now? Specifically for UPI, which has reached volumes of 10 lakh crore rupees per month? And should we charge merchants?

My answer is a very big NO. But I’ll put my case more eloquently because size matters no matter what they tell you in the movies. Also, Context matters.

<TLDR start>

We give banks our money so we can withdraw it when we like. If they add friction in terms of cost or time to our ability to do that, we will remove our money from the banking system and transact in cash. The government hates money going out of the banking system because it generates money on which tax is not paid, i.e. black money, and the RBI hates it because it takes away money from the banking system that could be lent to people and businesses.

To incentivise people to keep money in banks, allow them to transact in a free manner. Banks earn money from this same money we give them in return for being able to pay: it’s called “float“. Float is the money in savings bank accounts or current accounts, where banks pay us very little interest compared to what they can earn on it. “Spread” is what they earn from our money that sits in a bank minus what they pay us. That spread is huge and at the very least, is ₹ 85,000 cr. per year and probably 100,000 cr.+ in reality for the banking system. This is way more than they need for any cost they incur for maintaining UPI (or indeed any electronic system).

The government has also made it illegal to transact relatively small amounts in cash (even more than 20K). If that’s to work, then payments must be free at least at the retail end, so that people don’t try to go to cash for fear of having to pay a transaction fee when they need to pay someone. Small merchants, tiny shops and the like, will not even come on board given their low margins, and go back to cash (even if it’s illegal). People will refuse to pay if their bank charges a fee for UPI.

Most importantly, UPI’s cost is next to nothing. Banks are paid in two ways: currently, the government subsidises them with 1,300 cr. per year, enough to meet costs and more. But banks get much larger amounts by just keeping a larger amount of float money in the banking system. The difference is disproportionate – the cost of a UPI system to the core company that manages the transaction flow and settlement (NPCI) is 400 cr. a year at the very max. The amounts earned in float are close to 100,000 cr., and then, banks get Rs. 1,300 cr. from the government. Essentially, UPI is paid for.

Oh, wait, won’t we stifle innovation if we make it free? This is laughable because:

nearly all innovation in payments has come from the RBI or NPCI – NEFT/EFT, UPI, IMPS etc. and RBI has made public infrastructure possible.
And haven’t we innovated through the time that UPI was free? Since 2020, when UPI was made free, the growth in UPI has been absolutely huge, and solid innovation has happened (from IPO payment through UPI requests, to UPI investment into mutual funds to credit disbursement and repayment to what not).
If we innovated when it was free by an act of Parliament (meaning, not temporary), then the argument that innovation won’t work unless it’s paid falls flat.

Shouldn’t UPI be like a toll road? Pay for it even if it’s public infra? In India, very few roads are tolled. And the more popular a road gets, the more likely that the courts and government will make it free. This is also why city roads aren’t tolled – it is friction for people to use it, and they need to be used seamlessly if the city has to carry on as a good business center. UPI is the biggest and most used payment mechanism: introducing friction with a fee will just slow it down, and that’s not good for business in India.

What about players like GPay and PhonePe, through which platforms most UPI transactions happen? My answer is: what about them anyhow? They continued to operate when the government mandated it to be free. They have business models in advertising to earn money from the customers. They now charge a “platform fee” for some transactions where the merchant wants them to pay. They have a BBPS model that allows them to make money from bill payments. There’s lending, there’s the great customer base they can monetize. UPI is a gateway like free search is a gateway. The point is: they aren’t dying, and they’re in this knowing that UPI is free. If it remains free and they shut shop, others will quickly take their place. It is not necessary to change the rules to help them.

They got customers by giving cashbacks – paying customers to use their product. Others without deep pockets or who couldn’t lose money didn’t compete. If they leave the space, we’ll see more level-headed competition without cash-back-based artificial market creation.

My views:

UPI is a digital public good, high frequency and high traffic. Don’t slow it down.
don’t charge retail users for UPI
don’t charge small merchants for UPI
don’t even charge large merchants for UPI
Banks earn 50x to 100x more than the cost of UPI/payments in just float income
Government further subsidizes UPI
Parliament has enshrined free UPI in the Payments Act; unless that is changed, RBI can’t change the rules to make it non-free anyhow.
Other models: apps can charge a subscription fee, put ads, have lending, do other stuff, but do not allow a % of transaction to be charged
don’t even charge for NEFT or IMPS at the retail level, reduce NPCI fees as they are a not-for-profit
Payments need to be super-low-cost, banks more than make up through float income, which is high in India
There is going to be enough innovation as there has been all this time when it was free
<TLDR end>

Read the full article here.

https://www.capitalmind.in/2022/09/why- ... d-be-free/
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